Verizon and Outerwall’s Redbox announced over the weekend that they would be pulling the plug on the Redbox Instant streaming video service on Tuesday, Oct. 7.
The two companies said the service, which tied the Redbox DVD rental kiosk business with streaming video capabilities from Verizon, wasn’t as profitable as they had hoped it would be.
“The joint management of Redbox Instant by Verizon has elected to cease operation of the service effective Tuesday, October 7, 2014,” said a statement from Redbox Instant by Verizon. “The joint venture partners made this decision after careful consideration. The service had not been as successful as either partner hoped it would be. We apologize for any inconvenience this may cause our customers.”
In an online statement, the companies said information on the refunds would be emailed to current customers of the service on Oct. 10, as well as posted online.
“We apologize for any inconvenience and we thank you for the opportunity to entertain you,” the online statement read in part. Customers were referred to a FAQ in regards to their refunds, rights to movies previously purchased via the service, and deleting the Redbox Instant by Verizon app on various devices.
The service was launched late in 2012 as a hybrid model competitor to Netflix and other over-the-top streaming services. Customers could access a streaming library, or buy credits towards DVD/Blu-ray discs that were available at the Redbox kiosks.
Redbox Instant was available via Playstation3/4, Roku, Xbox One and Xbox 360, Android and iOS devices, Chromecast, FanTV, Samsung Smart TV, Kindle Fire, Blu-ray, LG Smart TVs, and Google TV services and devices.
Comcast recently stopped the sales of its Streampix service to data-only customers while also disabling the corresponding Streampix apps and web portal. Comcast is keeping Streampix alive as a promotion for its bundles or as a single service option.
In August, Rogers Communications and Shaw Communications announced they were launching their own version of a Netflix service called “Showmi.”
